Crypto currency is a new trend in the world. Its history lasts only one decade. But despite this "youth", the market of crypto currency is already extremely developed. There are various exchanges, a lot of developments and much more. But within the framework of the article, the most attention will be paid to the crypto currency market.
The technology on which the market is builtcrypto-currencies, a great future within the financial system. But no one can foretell what will happen. Undoubtedly, the block-technology is also valuable, and the ways of keeping available savings, and the means of their exchange. But here's the variety! Even a superficial overview of the Crypto-currency market allows us to notice that they are multiplying with considerable speed. So, the year 2017 has not yet ended, and almost a hundred new settlement funds have appeared in the world. In this case, they are often attracted significant funds. On average, for the same year 2017, for each Crypto currency, investors received just under ten million dollars. It is difficult not to notice that at the same time there is a high risk of collapse, in which someone will suffer. But with the prospect of a significant period of time, this situation is excellent: we will learn more now - there will be fewer problems later. We will also consider what are the crypto-currencies in the market and what they are.
However it may be new, it should not be forgotten thatall crypto-currencies are financial instruments. In other words, this is an area of high risk. Although significant profits. Here you can recall the so-called Mississippian bubble, and the crises of 1929, the 1980s, 2008, and many others, much smaller in size and scope. Therefore, the first financial instrument (bitcoin), when it began to bring money, caused many people to wish to earn this way and create numerous analogues. Anyone who enters the game at the very beginning, earns well. The later - the higher the price and the greater the risk. In this case, the crypto currency market is not very different from what could be observed in a lot of similar cases with other financial instruments.
How it all began?
It all started with a group of programmers, which was calledyourself Satoshi Nakamoto. They also developed the first crypto currency, known to us as bitcoin. Then a number of idealistic characteristics were announced, which virtual money should have for use in calculations without control, intermediaries and commissions. Therefore it is not surprising that initially this idea was not accepted. But over time, she began to gain popularity as an idea with good prospects. And, importantly, high profitability. Over time, the shadow business began to show interest in them. And now the benefit and perspective of this direction was understood by numerous speculators. For them, these are attractive instruments that have high profitability and significant revenues.
For her, the crypto-currency market was formed. As the number of people increased, and they wanted to participate in trade, the variety of target sites, which by analogy with securities were called exchanges, also increased. Interest in the currency warms up an unprecedented growth of a cent. Consider the case of bitcoin. So, initially it cost only five US cents. And literally the other day a record of 5,000 dollars was set! By simple calculations it can be established that over a decade its value has increased by a hundred thousand times. Knowingly bitcoin is called black gold. Few where you can get such a benefit. After the capitalization of the market with real money began, the volume of trade began to grow sharply. Now we are talking about billions of dollars. Let's conduct a small analysis of the Crypto-currency market and estimate what is there for our services.
It was with him that it all began. Bitcoin is rightly called electronic gold. It was launched in 2009. Feature bitkoina is the complexity of its extraction and limited emissions. Their quantitative limit is exactly 21 million pieces. Probably, it will be reached approximately in 2040. Now profitability can often only discourage one coin. But the cost of extracting it is steadily growing. Operations using bitcoin are a transfer between individuals. They are reflected in transactions. This action is irreversible. At the moment, it is almost impossible to trace the subsequent path of digital money. This state of affairs greatly complicates external control and makes it practically impossible. It is often possible to hear forecasts that the fall of the crypto-currency market is coming. While this is quite relevant in relation to a large number of other surrogates, but not bitcoin.
It was launched in 2011. The creation was carried out under the motto of providing an alternative to silver. There is a limit of 84 million pieces. The peculiarity of this system is that we have worked quite a bit over the "production" of lightcoins. So, in this case, the owners of super-productive systems are difficult to claim super profits. Virtually all users are equal in their capabilities.
This is similar to the precursors of the crypto currency. Despite the fact that it has almost identical characteristics, there is still one significant difference here: there are no restrictions on emissions. To adjust the volume and rate, inflation is embedded, which depreciates the cost of pirkona by 1 percent per year. Here, too, a clever capitalization scheme has been applied, so the market forecast for the Crypto-currency is positive in this case. So, sixteen months after the start of the bidding, the cost of pirokins supported 135 million current US dollars. Why are they so attractive? The matter is that according to the available approach incomes are distributed not only by people representing computing platforms, but also by owners.
This currency began its "life" in 2011. It should be noted that it stands out significantly against the background of other financial instruments of this kind. So, the crypto currency is used as an alternative to an existing DNS system. It is used by network resource owners who are unhappy with the monopoly of ICANN and its almost unlimited possibilities. Neymkoyn also works on the system of alternative DNS. This currency is used to pay for the extension of the work of resources that are in the .bit domain zone. But this scheme is attractive not only for economic profitability. After all, its value is not contained in one value. The fact is that the data that is exchanged is cryptographically encrypted. Therefore, you can be calm for them.
Began to function in 2013. Enjoys quite a lot of popularity. Attractive for the masses with their high security. So, for the transaction, nine consecutive encryptions of six different types are used. Originally, the currency was mined in huge quantities. Literally in a matter of months, its number reached tens, and then hundreds of millions. Now their emission is reduced to one million a year.
In general, the most interestingrepresentatives of the crypto-currency market. Of course, this is not all, there are many other interesting names and projects, but if you describe them all - this requires a book, not an article. Now let's talk about the risks. Do not forget that they have any financial instrument. You can often hear about the collapse of the crypto-currency market. Do these statements have real grounds? Undoubtedly! It should be understood that crypto-currencies are not supported by the state or certain material values. They are on the move solely because people consider them valuable. Faith will disappear - and they will simply turn into encrypted data cells on the servers. In reality, everything is much more complicated. Influence on the state of affairs has a number of factors. It should be understood that when the saturation point is reached, a collapse may occur. Even now you can periodically read about the fact that this or that market has fallen. Typically, this is most often understood as a temporary drop in the cost of bitcoin, but you should still be cautious. If you want to enter this market, you should understand that in a system where the tools are connected, the collapse of one can contribute to the emergence of the domino effect.
Speaking of crypto-currencies
It should be noted that they (for the time being) do not carrysystemic risks. In the event of a collapse, the impact of the Crypto-currency on the economy will be minimal. Although it should be noted there are quite a lot of disruptions in the work of exchanges. Of course, they did not undermine the economy, but they already attracted attention. This negative aspect must be overcome even before the price of obtaining experience becomes extremely high. In the meantime, we can state that even if all the crypto-currencies inexplicably collapse in one day, this will not knock out the foundation from under the feet of the financial system of the world. Why? The fact is that the capitalization of all crypto-currencies does not exceed ... the state of Bill Gates. Of course, the damage will be serious, but limited. This is about the same as in the US will be another hurricane. It is necessary to note, however, the fact that crypto-currencies are dispersed all over the world. For example, they flourished to the greatest extent in Asia, in countries such as Japan, South Korea, and India. Simultaneously, as the capitalization of currencies grows, their level of conversion grows, and the relationships with the rest of the market expand. Gradually, even decisions about regulation are made.
What can we expect in the future? Probably, some platforms will collapse, some of the crypto currency will depreciate, many people will lose their money, someone will go to jail. And although there are already some alarming signals, numerous experiments that continue in large numbers will prepare the foundation for a diverse large capital market, where anyone can work. It took literally several years, which the world community needed to evaluate and adopt a completely new concept. Now virtual money represents a huge market in its scale. Crypto-currencies attract many people with tempting prospects and high profitability. But you should remember about the pitfalls and not lose in the pursuit of wealth all that is already there.